Procter & Gamble Developed CONVENIENCE COMPANIONS CONSUMER ROBOTICS (‘BOTS)

1. Procter & Gamble Developed CONVENIENCE COMPANIONS CONSUMER ROBOTICS (‘BOTS)

2. MULTIPLE ‘BOTS FROM A COMMON ($30) TECHNOLOGY PLATFORM SECURITY CLEANING

4. Home Safety System ‘Bot • Patrols house while you sleep, work, or vacation • No Installation - Works right out of the box • Home safety • Temperature (risk of freezing pipes or fire) • Gas and water leaks (washing machine, roof, bath) • Smoke (listens for ceiling smoke alarms) • Intruder deterrence & detection • Makes sounds to suggest home occupied • Motion sensors • Uses cordless phone to call numbers you specify • Pager, cell phone, neighbor, relative

5. Why Safety/Security • High-order need • People will pay whatever it takes to feel safe • “Home safety system” very appealing! • “Does everything I need” • Intruder deterrence & detection plus leaks, fire • Installation ease – just plug it in • 52% purchase intent at “reasonable price” • Will improve; 37% fence sitters • $353 mean “reasonable price”, $200 median

6. ‘BOTS HAVE “WOW”ONE OF THE MOST LONG-DESIRED (BUT NEVER AVAILABLE) PRODUCTS EVER TO COME TO MARKET - - LOWER INITIAL ADVERTISING COSTS Sony sold out $100 million in a few hours by word of mouth

7. Increasing Human Interaction Fun, Companion-ship Clean Air bot Functional Increasing Automation THE SWEET SPOT

8. $30 MASS-PRODUCED ‘BOTS ARE ON-TRACK TO BE THE “MODEL T” OF THIS CENTURY 5X cost at $149.95 retail $4999 ISR avatar $140,000 Cyberguard $4,500 Dyson vacuum

9. $149.95 PROFIT STRUCTURE

10. MULTIPLE SALES INTO A SINGLE HOME BY FUNCTION SECURITY CLEANING

11. CONTINUING SALES VIA PLANNED OBSOLESENCE AND UPGRADE ACCESSORIES (PC model) FADING FAST PAINFULLYOBSOLETE THE LATEST AND GREATEST

12. EXISTING MARKETS(INITIAL FOCUS) • $640 MILLION sales of manual brooms, mops, and dusters; • $5.1 BILLION U. S. market for residential security devices and services; • $2.4 BILLION in North American sales of manual carpet cleaners

13. NEW-TO-THE-WORLD MARKETS(future development and patents) • A remote PHYSICAL AMBASSADOR (projects your remote physical presence - - being in two places at once - an Avatar.) • Remote INTELLIGENCE as a service (entities, security, companionship, elder care, pet monitoring, etc.)

14. INITIAL (target) OUTLETS • Specialty Catalogs e.g. Hammacher • QVC • PetSmart • Tupperware Parties • Corporate Holiday Gift Packs • E-commerce (P&G I-ventures) • Comdex, Consumer Electronics Show

15. SCALABLE REVENUES • SOFTWARE DOWNLOADS (new personalities and functions) • ‘BOT RELATED SUPPORT SERVICES (e. g. security monitoring, remote provision of intelligence) • ‘BOT MAINTENANCE AND SERVICE CONTRACTS • PURCHASE REBATES from service providers (MSN, ADT, ISP’s, Atlantic Bell)

16. “RAZOR AND BLADES” REVENUESAUTOMATED USE OF CONSUMABLES PROVIDES FOR REVENUES FROM SALES OF CONSUMABLES AND C0-BRANDING BATTERY PACKS

17. REVENUE FROM AGGRESSIVE PATENTING • Exclusive Licenses to key Patents and Patents Pending (from P&G) • “Frequent Filing” around early consumer experiences and marketing research • Filing patents on new to the world Business Models (e. g. remotely provided intelligence.)

18. THE INVESTMENT OPPORTUNITY • SIZE OF POTENTIAL MARKETS NOT CONSTRAINING • $217 MILLION SALES IN 2004 • PROFITABLE OPERATIONS BEGINNING IN 2003. MULTIPLE LIQUIDITY EVENTS • PRODUCTS TARGETED TO STIMULATE FORTUNE 50 INVESTMENTS. • DEVELOPING NEW, HIGH-VISIBILITY MARKETS TO STIMULATE IPO.

19. THE INVESTMENT $4.0 MILLION CAPITAL NEED 2001 $2.9 MILLION operating cost 2002 $1.1 MILLION operating cost 2003 $12.9 MILLION operating income 2004 $37.8 MILLION operating income

20. DISCUSSION

21. Functional Needs Needs More Time (automation) Gives a better result (always clean, fresh) Needs More Security Aspirations Stress Relief (save time, provide service, pleasant experience ie. Aromatherapy) Companion/Amusement (sounds, movements, reactions, interactions or no interactions) Self / External Image (I’ve Got One!) Appearance (polarizing, distinctive, elegant, fun) Background Story Segment Profile

22. Initial Segments • Professional women - - Women Entrepreneurs, Managers, Travelers • Pet Owners • Upscale Technophiles • People buying Gifts for these Segments • College Startup Gift Packs and Wedding Registries

23. Sample Media • Working Woman Magazine • Delta Airlines Sky Magazine • Frequent Flyer Points Redemption / offers • Internet Presence at Robotics Clubs, and iVillage.com • Quality Value Channel (QVC)

24. REVENUE STREAMS • SALES OF ‘BOT UNITS • HARDWARE ACCESSORIES (PC model) • CO-BRANDING and PROMOTIONS of consumer goods • SOFTWARE DOWNLOADS and SERVICES (SCALABLE) • PROMOTIONS & PATENT LICENSING

25. Consumer Ranking of ‘Bot Benefits (n=454) • Device that mops floors while you sleep • Patrolling home security system • Moving air purification device* • Device that picks hair out of carpets & rugs* • Device that kills weeds & sows grass seed *especially appealing to pet owners

26. Results of “Dusty’s” Initial Qualitative In-Home Testing • Enthusiastic response • Overwhelming agreement they would use product daily • 2.5-3x normal consumption of consumables • Belief that Dusty random pattern does cover floor • Numerous improvement suggestions

27. Why Hard Surface Floor Cleaning • Unmet consumer need • Saving even a few minutes is important • Wet mopping is hated • Uses only quiet time she has • Huge market opportunity • $400 million Swiffer, WetJet eventually bigger • Bots’ automation  2.5-3x consumables usage • Requires both robotic and cleaning competencies

28. MARKETING PLANS • Recruiting Marketing Officer likely with CEO • P&G Marketing and external specialists • Target Segments (Time Starved Women, Pet Owners, Gift Buyers), Target Media • Use News (WOW), sampling, demonstration, targeted advertising to generate WOM Buzz. • Marketing Alliance Options for revenue and credibility

29. REVENUE FROM PROMOTIONAL DESIGNS AND SOFTWARE HIGH VISIBILITY IS KEY TO ADVERTISNG